Correlation Between Ab Bond and The Hartford
Can any of the company-specific risk be diversified away by investing in both Ab Bond and The Hartford at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ab Bond and The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Bond Inflation and The Hartford Emerging, you can compare the effects of market volatilities on Ab Bond and The Hartford and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Ab Bond with a short position of The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Bond and The Hartford.
Diversification Opportunities for Ab Bond and The Hartford
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ABNYX and The is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Ab Bond Inflation and The Hartford Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Emerging and Ab Bond is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Ab Bond Inflation are associated (or correlated) with The Hartford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Emerging has no effect on the direction of Ab Bond i.e., Ab Bond and The Hartford go up and down completely randomly.
Pair Corralation between Ab Bond and The Hartford
Assuming the 90 days horizon Ab Bond Inflation is expected to generate 0.34 times more return on investment than The Hartford. However, Ab Bond Inflation is 2.97 times less risky than The Hartford. It trades about 0.08 of its potential returns per unit of risk. The Hartford Emerging is currently generating about -0.14 per unit of risk. If you would invest 1,041 in Ab Bond Inflation on September 1, 2024 and sell it today you would earn a total of 3.00 from holding Ab Bond Inflation or generate 0.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Bond Inflation vs. The Hartford Emerging
Performance |
| Timeline |
| Ab Bond Inflation |
| Hartford Emerging |
Ab Bond and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Bond and The Hartford
The main advantage of trading using opposite Ab Bond and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Bond position performs unexpectedly, The Hartford can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in The Hartford will offset losses from the drop in The Hartford's long position.| Ab Bond vs. Growth Strategy Fund | Ab Bond vs. Artisan Emerging Markets | Ab Bond vs. Black Oak Emerging | Ab Bond vs. Transamerica Emerging Markets |
| The Hartford vs. The Hartford Growth | The Hartford vs. The Hartford Growth | The Hartford vs. The Hartford Growth | The Hartford vs. The Hartford Growth |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Commodity Directory module to find actively traded commodities issued by global exchanges.
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